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Which of the following statements about the Fed measures to control money supply is FALSE ? a. Increasing the reserve requirement will lead to an

Which of the following statements about the Fed measures to control money supply is FALSE?

a.

Increasing the reserve requirement will lead to an increase in money supply

b.

When the Fed wants to decrease the money supply, it sells government securities to the public

c.

Open-market operations is the Fed's most commonly used tool to regulate money supply

d.

Increasing the discount rate discourages banks from borrowing, thus reducing the number of available loans

e.

The reserve requirement refers to the percentage of a commercial bank's checking and savings accounts that must be physically kept in reserve

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